Unit 25 Quiz

Which of the following types of insurance coverage covers loss of income that occurs if the property cannot be used to produce income?

• Public Liability

• Business interruption

• Umbrella coverage

• Casualty

Commercial insurance policies most commonly use which valuation approach?

• Replacement Approach

• Income Capitalization Approach

• Cost Approach

• Sales Comparison Approach

Which of the following types of insurance coverage covers an owner against financial losses that result from an employee’s criminal acts or negligence while carrying out duties?

• Casualty

• Surety bonds

• Business interruption

• Umbrella coverage

Which of the following is the most common form of homeowners insurance?

• HO-1

• HO-2

• HO-3

• HO-5

Which of the following is NOT a responsibility of a real estate salesperson regarding insurance?

• Suggest getting insurance coverage in advance

• Shops the individual to different carriers for a policy that works for them

• Explain purpose and costs of property insurance

• Explain escrow and property taxes